Report fraud to the bank first, then to the Federal Trade Commission
Call your teen's bank immediately if you notice unauthorized transactions. Most banks have a fraud line open 24 hours—the number is on the back of the debit card or in your account app. Tell them which transactions are fraudulent and ask them to freeze the account. The bank will issue a new card and start an investigation, usually within one business day.
After the bank, file a report with the Federal Trade Commission at IdentityTheft.gov. This creates an official record and gives you a recovery plan tailored to your situation. The FTC does not investigate individual cases, but the report protects you if a fraudster opens new accounts in your teen's name later.
If the fraud involved identity theft—someone using your teen's Social Security number to open accounts elsewhere—also place a fraud alert with the three credit bureaus (Equifax, Experian, TransUnion). One call to any of them triggers alerts at all three. This makes it harder for a fraudster to open new credit in your teen's name.
Key Takeaways
- Call the bank's fraud line immediately to freeze the account and stop further unauthorized charges.
- File a report with the Federal Trade Commission at IdentityTheft.gov to create an official record and get a recovery plan.
- Place a fraud alert with the credit bureaus if someone used your teen's Social Security number or personal information to open accounts.
- Keep copies of all fraud reports, bank statements, and correspondence in case you need to dispute charges later or prove the fraud to creditors.
- Check your teen's credit report annually for the next few years to catch any accounts opened without permission.
What happens after you report fraud to the bank
The bank will investigate the transactions you reported. During this time, the account remains frozen and your teen cannot use the debit card. The bank typically completes its investigation within 10 business days, though complex cases can take up to 45 days.
Once the investigation closes, the bank will either reverse the fraudulent charges or deny the dispute. If the charges are reversed, the money goes back into the account. If the bank denies the dispute, you can appeal—ask for the investigation file and review it for errors before deciding whether to push back.
Most banks cover fraudulent debit card charges under federal law, so your teen should not lose money if the fraud is confirmed. However, the timeline for getting the money back varies. Some banks credit the account immediately; others wait until the investigation closes.
How to gather evidence before calling the bank
Pull your teen's bank statements for the last 60 days and mark every transaction you do not recognize. Write down the date, amount, and merchant name for each one. Take screenshots of the transactions in the app as well—banks sometimes need visual proof.
Check whether your teen's debit card was lost, stolen, or only used online. If the card is missing, tell the bank that too. If the fraud happened online, note whether your teen shared the card number, used it on an unfamiliar website, or clicked a suspicious link.
If your teen received text messages or emails asking for card details, passwords, or verification codes, save those. Do not click any links in them, but forward them to the bank's fraud team. These messages are often phishing attempts designed to steal card information.
Protecting the account while the investigation is open
Ask the bank to place a temporary hold on the account so no new transactions can go through. This stops a fraudster from making more charges while you wait for the investigation to close.
Change your teen's online banking password immediately. Use a password that is at least 12 characters long and includes numbers, uppercase letters, and symbols. Do not reuse a password from another account.
If your teen uses the same password for their email, social media, or other accounts, change those too. Fraudsters often start with one compromised password and try it everywhere. Enable two-factor authentication on the email account linked to the bank account—this adds a second verification step that makes it much harder to break in.
What to do if the bank denies your fraud claim
If the bank says the transactions were authorized and refuses to reverse them, ask for a written explanation. Banks must provide this in writing if you request it. Read it carefully to see what evidence they used to deny the claim.
Common reasons for denial include: your teen entered the PIN correctly (suggesting they authorized the transaction), the transaction occurred at a location where your teen was physically present, or the transaction matches your teen's normal spending pattern. If any of these reasons are wrong, tell the bank.
You can file a complaint with the Consumer Financial Protection Bureau if you believe the bank handled the dispute unfairly. The CFPB investigates complaints and can order the bank to reverse charges if it finds an error. File at consumerfinance.gov or call 1-855-411-2372.
Checking for identity theft beyond the checking account
Fraudsters sometimes use a teen's information to open credit cards, take out loans, or sign up for utilities. Check your teen's credit report at AnnualCreditReport.com—you get one free report per year from each bureau.
Look for accounts you did not open. If you find any, contact the creditor immediately and tell them it is fraud. Ask them to close the account and remove it from your teen's credit report. Keep a record of every call and follow up in writing.
If your teen is under 18, you may be able to place a credit freeze on their report. This prevents anyone from opening new accounts in their name without your permission. Contact each of the three bureaus to set this up. Some states allow minors to freeze their credit for free; others charge a small fee.
Preventing fraud on a teen's account going forward
Set up transaction alerts in the bank app so you receive a notification every time the card is used. This lets you spot unauthorized charges within hours instead of days.
Teach your teen never to share their PIN, card number, or security code with anyone—not friends, not online, not over the phone. Legitimate companies never ask for this information via text or email.
Review the account together once a month. Go through recent transactions and ask your teen about any you do not recognize. This builds the habit of monitoring their own account and catches fraud early.
Consider using a debit card with a low daily spending limit until your teen is older. Many banks let you set a cap on how much can be spent per day. This limits the damage if the card is compromised.
Frequently Asked Questions
How long does it take to get fraudulent charges reversed?
The bank typically investigates within 10 business days and reverses charges if fraud is confirmed. Some banks credit your account immediately while the investigation continues; others wait until it closes. Ask your bank for a timeline when you report the fraud.
Can my teen's credit score be damaged by fraud?
A checking account fraud usually does not affect credit score because checking accounts do not appear on credit reports. However, if a fraudster opened credit cards or loans in your teen's name, those accounts can damage their score. Monitor the credit report and dispute any unauthorized accounts immediately.
What if my teen authorized some of the transactions but not others?
Tell the bank exactly which transactions your teen authorized and which ones they did not. The bank will only reverse the unauthorized ones. Be specific about dates and amounts so the investigation is clear.
Do I need to file a police report for debit card fraud?
You do not need a police report for the bank to reverse charges, but filing one creates an official record. This is especially important if identity theft is involved. File a report with your local police department and keep a copy for your records.
Should I close the account after fraud is reported?
You do not have to close it, but some families do to start fresh. If you keep it open, change the password, enable two-factor authentication, and set up transaction alerts. If you close it, ask the bank to issue a new account number so your teen can still receive direct deposits or transfers.